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mombefor78 mombefor78
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Everything else being equal, how will a decrease in the interest rate in Mexico affect Mexico's GDP?
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Macroeconomics

Macroeconomics


Edition: 3rd
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babolat00babolat00
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A decrease in the interest rate in Mexico will cause a decrease in the willingness to invest in Mexico. This in turn reduces the demand for pesos and causes the peso to depreciate. A depreciation of the peso will encourage exports and discourage imports, causing net exports from Mexico to rise. This will cause an increase in the GDP of Mexico.
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mombefor78 Author
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5 months ago
Helped a lot
homework1
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Yesterday
Smart ... Thanks!
jbarnett14
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2 hours ago
Good timing, thanks!
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